Ethereum

Shiba

Pepe

Arbitrum

Shiba Inu

<p>The Ethereum network has experienced a remarkable surge in revenue this week, reaching levels not seen in almost two years. This surge can be attributed to a speculative frenzy surrounding meme coins, which has led to a significant uptick in activity on the blockchain.</p>
<h2 class="wp-block-heading" id="ethereum-network-fees-experience-a-massive-rise">Ethereum network fees experience a massive rise</h2>
<p>According to data from IntoTheBlock, Ethereum’s mainnet revenue from network fees soared to $193 million, marking the highest figure since May 2022 and representing a substantial 78% increase from the previous week. This surge in on-chain activity has been primarily fueled by increased speculation with meme tokens, including popular ones like Pepe (PEPE), Shiba Inu (SHIB), and Floki (FLOKI).</p>
<p>These tokens have seen their prices more than double over the past week, attracting a wave of retail investors looking to capitalize on the hype. Additionally, trading volumes on decentralized exchanges (DEX) built on Ethereum have surged by 40% to reach $20 billion this week, according to <a href="https://defillama.com/dexs/chains/ethereum" rel="noopener noreferrer nofollow" target="_blank">data</a> from DefiLlama.</p>
<p>Investors holding Ethereum’s native token, ether (ETH), have benefited from this frenzy due to the network’s token-burning mechanism. With Ethereum’s transition to a proof-of-stake blockchain, known as the Merge, a portion of the transaction fees paid by users is burned, effectively reducing the token’s circulating supply.</p>
<h2 class="wp-block-heading" id="implications-and-challenges-for-the-ecosystem">Implications and challenges for the ecosystem</h2>
<p>In just the past week, the supply of ETH has decreased by approximately 33,400 tokens, equivalent to roughly $130 million at current market prices. This deflationary pressure has contributed to a positive outlook for ETH holders, with Ethereum becoming deflationary at a rate of 1.45% annually, according to data from ultrasound.money.</p>
<p>However, the surge in activity on the Ethereum blockchain has also led to increased costs for users. Average transaction fees, known as gas fees, have skyrocketed to as high as $28 this week, rendering the network prohibitively expensive for many users, as noted by IntoTheBlock.</p>
<p>Furthermore, fees on layer 2 solutions, which are designed to improve scalability on the Ethereum network, have also seen a significant increase. Transactions on platforms like Arbitrum have cost as much as $1, marking the highest fees since 2022. To address these challenges, the upcoming Dencun upgrade is expected to provide a much-needed solution.</p>
<p>Scheduled for release next week, the <a href="https://www.cryptopolitan.com/ethereums-dencun-upgrade-close-fees-debate/" data-type="post" data-id="477588" rel="noopener noreferrer nofollow">upgrade</a> aims to lower transaction costs on layer 2 solutions to mere cents, offering relief to Ethereum users. Despite the challenges posed by high transaction fees, the price of ether briefly surpassed $4,000 on Friday for the first time since late 2021. However, it later experienced a 4% decline alongside bitcoin (BTC). As of now, ETH is trading at around $3,900, marking a 15% increase for the week, in line with the broader market’s performance as reflected by the CoinDesk 20 Index (CD20).</p>

Ethereum’s revenue surge to reach two-year high

Table of Contents

Cryptopolitan_News

Other articles published on Mar 10, 2024

Why $2 Is A Realistic Target For Polygon Rival Retik Finance (RETIK) In 2024, Priced Under $0.2 T...

Bitcoin to $150K in 12–18 Months: Tom Lee

Bitcoin Miners Energy Consumption Skyrockets Ahead of Halving

Get Ready for the Bull Run with These 5 AI Altcoins Poised for Growth

Here Is Why PEPE Price Could Continue Breaking New All-Time Highs

Is Cardano Dead? 74% Dead Coins Uncovered

Join our free newsletter for daily crypto updates!